VATAC8600 | Examples and letters: letter 1 - initial warning letter of intention to change stagger in cases where financial difficulty could result in accumulating VAT debt

Note: This section is referred to at VATAC7300

Letter 1

Dear

[Name and VRN]

HMRC, in accordance with their powers under VAT Regulations 1995/2518 Regulation 25(1), intend to direct that the VAT accounting periods for [name] will be changed from quarterly to monthly.

The reason for this decision is that considerable amounts of VAT are considered to be at risk of being lost to HMRC by [name], as we have reason to believe that they are in financial difficulty. A period of 14 days from the date of this letter will now be allowed to give the company the opportunity to make representation about this decision. If the Commissioners do not hear from you by [14 days from date of letter], then the accounting period will be amended to monthly returns with effect from [date].